Brother Industries : Presentation Material

Fiscal Year 2021 (ending March 31, 2022)

Third Quarter Financial Results

Brother Industries, Ltd.

February 1, 2022

Information on this report, other than historical facts, refers to future prospects and performance, and has been prepared by our Management on the basis of information available at the time of the announcement. This covers various risks, including, but not limited to, economic conditions, customer demand, foreign currency exchange rates, tax rules, regulation and other factors. As a result, actual future performance may differ from any forecasts contained on this report.

© 2022 Brother Industries, Ltd. All Rights Reserved.

Highlights

Results for FY2021 Q3 (Oct.-Dec.)

Revenue increased, due mainly to firm performance of the Machinery business, in addition to positive FX effects. Business segment profit decreased due to a significant increase in logistics costs and parts and materials costs.

 Sales revenue

184.5 billion yen/＋4.0% (year-on-year)

• In the P&S business, revenue increased due mainly to positive FX effects.
• In the P&H business, revenue fell below the high level of the previous year, in which there was special demand from those staying at home.
• The Machinery business recorded an increase in revenue as a result of recovery of demand for capital investment in industrial sewing machines among apparel manufacturers and firm performance of machine tools and industrial parts.

 Business segment profit

23.5 billion yen/ -25.0%(year-on-year)

• Despite factors such as higher average unit prices in the P&S business and positive FX effects, business segment profit decreased due to a significant increase in logistics costs and parts and materials costs.

Forecast for FY2021 / Shareholder returns

The forecast for revenue and each measure of profit have been revised upward mainly in response to positive FX effects.

Following revisions to the forecast for FY2021, the dividend forecast has been revised upward. The Company will repurchase its own shares.

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Results for FY2021 Q3 (Oct.-Dec.)

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Consolidated Results for FY2021 Q3

Revenue increased, due mainly to firm performance of the Machinery business,

in addition to positive FX effects

Business segment profit decreased due to a significant increase in logistics costs

and parts and materials costs

(100 Millions of Yen)

	20Q3	21Q3	Change	Rate of Change
	（w/o FX）
Sales Revenue	1,774	1,845	70	4.0%
(-2.1%)
Business Segment Profit	314	235	-78	-25.0%
Business Segment Profit Ratio	17.7%	12.8%
Other income/expense	-10	13	24
Operating Profit	303	248	-55	-18.1%
Operating Profit Ratio	17.1%	13.5%
Income before Tax	304	252	-52	-17.0%
Net Income	228	174	-54	-23.6%
USD	104.45	113.60
EUR	124.41	130.39

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Results for FY2021 Q3 by Business Segment

						(100 Millions of Yen)
			20Q3	21Q3	change
		Sales Revenue	1,092	1,149	57
Printing & Solutions		Business Segment Profit	243	178	-65
		Operating Profit	242	179	-63
		Sales Revenue	161	113	-47
Personal & Home		Business Segment Profit	41	15	-26
		Operating Profit	40	16	-25
		Sales Revenue	221	262	41
Machinery		Business Segment Profit	22	32	10
		Operating Profit	13	32	19
		Sales Revenue	88	85	-3
Network & Contents		Business Segment Profit	-6	0	7
		Operating Profit	-7	12	18
		Sales Revenue	176	200	24
Domino business		Business Segment Profit	13	7	-6
		Operating Profit	10	7	-3
		Sales Revenue	37	35	-2
Other		Business Segment Profit	2	3	1
		Operating Profit	4	3	-1
		Sales Revenue	1,774	1,845	70
Total		Business Segment Profit	314	235	-78
		Operating Profit	303	248	-55

*Not including elimination amount by inter-segment transaction.

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